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tv   On the Money With Maria Bartiromo  NBC  November 3, 2013 5:30am-6:01am PST

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welcome to "on the money." i'm maria bartiromo. the market hit new highs. the fed does nothing. are we nearing double territory and what should you do with your money now? is it a prescription to fix obama care. what the states can teach the government. broadway billions. sound of music and money. a popular play celebrating its tenth anniversary. we'll find out what makes "wicked" so popular. "on the money" begins right now. >> this is america's number one financial news program. "on the money." now maria bartiromo. here is a look at what's making news. all eyes and ears were on the federal reserve.
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the fed said it will continue to buy bonds to the tune of $85 billion a month, and it will keep interest rates near zero. the markets wrapped up a very strong october. the dow falling on thursday after hitting an all time high earlier in the week. the markets rebounded on friday. we're about halfway through earning season. pfizer exxon mobile and merck beat profits. apple beat expectations. linkedin beat. retail sales for the month of september were weaker than expected. a drop in car buying. economists were expecting a gain of .1 of a percent. the faa has passed new regulations allowing the use of
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mobile devices while in the air. that does not mean you can make phone calls. the new rules are expected to take effect by the end of the year. the fed did this nothing this week but does that mean you should be doing nothing when it comes to your portfolio. joining me right now and bob mcteer. are the markets feeling like bubble mentality to you or do you think the rest of the year is as strong as the rest of the ten months? >> i think we could see a strong finish. certain areas feel a little bubbly to me. i think the market could continue so see upside risk. my sense is the world is still underallocated to equities. i think we're working through the fix out of bonds, but there's a lot more to go.
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i'm optimistic for the rest of the year and 2014 could be a good year. >> bob, this week we saw the federal reserve with the bond buying program. $85 billion of bond buying every month. do you think that's the right thing to do and are you concerned about the fed strategy of this easy money? >> i think they missed their last best chance in september to start a taper. they said it's data dependent. the data is not cooperating with them. we will probably have another issue with the debt ceil iing a expenditures next year. i don't think they will be able to start tapering until next april. whether it's a good idea, kwa quantitative easing saved our cookies in 2008 and early 2009.
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we had that 18 month break from expansion of the ballot sheet under operation twist. now we have qe3 for a year. it's probably diminishing return. they don't have a good way to get out. they are sort of trapped bid their own rhetoric. >> that's a good way to put it. do you agree with that? >> i would. we don't see a taper until the end of first quarter next year. i would concur. >> here we are in the third quarter earnings season. not so bad. what's your take so far? >> i don't think it's that bad. we're seeing areas where we haven't seen strength. significant positive surprises and technology in areas of the
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market where management was marking down expectations. i think that's been a surprising area of strength over the last couple of quarters that could continue. if we see the economic recovery we're all expecting signs that the fed can start to taper, it's time to think about buying the more economic sectors of the market. for example, the inexpensive industrial, the inextensive technology stocks. >> you think they're inextensive. you're not worried about valuation? >> i'm not worried about valuation. where i worry about valuations are the bob-like stocks. >> bob are you seeing any impact of obama care on economics? how does the health care legislation play into that?
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>> everything is anectodal. it's got to be. employment growth is weak. i've got to believe a lot of that is the uncertainty surrounding obama care. i believe the shift toward part-time workers has something to do with obama care also. >> this whole dysfunctional government has been an issue, savita. do you think there's any chance of a grand bargain in the next month or so? these fights begin again in january. >> it's like the same movie over and over again. i'm optimistic about washington. i think what we've seen is the polls are suggesting that the american public is sick of kind of brinkmanship and these political cams that are styming
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growth. we're seeing more of the same play out over and over again. i think politicians have to be aware of this at this point and start to come together. the guy who is look like heros are the guys on either side of the aisle saying let's cooperate instead of moving further away from each other. >> go ahead, bob. >> one good thing we have o going for us is the continuation of the sequester. it gets more painful as time passes. that could provide an incentive for people to have a package that loosens up on the arbitrariness. >> gooded to have you on the program. we'll see you soon. up next, the federal government scrambling to cure
5:38 am later, i'm off to see the wizard. broadway "wicked" the story of oz. i got an inside look at how this moneymaker has defied gravity. take a look at how the stock market ended the week. back in a moment.
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access to has been a frustrating experience for way too many americans. let me say you deserve better. >> health and human service secretary says americans deserve better. some are already receiving better services. many people who live in state s that run their own health exchanges are shopping online. joining me is covered california executive peter lee and
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christine ferguson. good to have you on the program. thanks for joining us. >> great to be here. >> peter, you have nearly 180,000 applications started. christine, rhode island site has yet to crash. how have you rolled your site successfully when we're seeing something different on a federal level. what did you do different? >> we started building our system two years ago. the federal government had a different circumstance. the whole plan was to be state based. it was to have most states run it themselves like we're doing in california and they're doing in rhode island. a lot of states decided they weren't going to play. the federal government had a much bigger list and more uncertainty late in the game. we were able to plan early and keep our eyes on the ball of having that ball ready, which it is. it's working great. >> for us, we took a very
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consumer approach. we're focused on small business. we're focused on individuals coming in. that capacity to look at what's available before you go in and have to set up an entire account, that process is an importance one. >> are the new plans much more expensive than the old? i keep hearing these nightmare stories about how somebody was paying $200. now they will pay $500. what's the scoop in terms of pricing? >> on the pricing issue, i think there are a number of things happening at the same time. there were health insurance reforms that were included in the aca and at the state level. in those states that had not done much insurance reform you see a difference in rates. >> health and human services secretary took responsibility for the failed website launch during her congressional testimony this week.
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peter, you used to work with her at hhs. is the secretary to blame here? >> i don't think so. i put a lot of blame on the shoulders of 34 governors who for two years tried the play politics and trash obama care instead of making sure their citizens got insurance. we had a governor, arnold schwarzenegger, who said we're going to step up and do right by our citizens. we built a system. we focused and showed what we can do. kathleen sebelius is a very good reader. >> there's so many people, several million people, are being notified that their private insurance policies will be cancelled at the end of the year because those policies do not comply with the law. president obama has promised that if you like your plan, you can keep your plan. what happens to all those people now that they realize they can't
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keep their plan? >> in california there's 900,000 getting those notes. 300,000 will get a financial leg up to reduce their costs. 600,000 won't get subsidies. before today they would have been locked into their health plan. now they can pick between different health plans. every health plan will have benefits they will rely on. today, you aren't sure. you have insurance that you might not be covered when you need it. >> are the new plans really comparable? the law mandates certain benefits every has the buy whether they need it or not. a man being forced to take on prenatal care. >> a woman has to pay for the men to get their prostate cancer fixed. let's be clear, we're not putting together an insurance system where you only pay for the services you need in that year. that would be paying as you go
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and not having insurance. the idea is that you have a group of people in the pool. >> the government is estimating that 40% of the 7 million people projected to enroll the first year need to be young and healthy to mitigate costs. it's early, but are you seeing young healthy people sign up on your exchanges? what happens if this age bracket opts to pay the penalty instead? >> we'll see the first month enrollment, it's going to be older. we have five more months. we've been talking to a lot of people who said they are called the young invincible. they're not the young and stupid. they want health insurance if it's affordable. it helps them more than anyone else. they are lowing income. they are starting out. they get a big financial leg up. they can buy lower costs plan because of that. >> i'm sure peter has the same sense that one of the difficulties that we're having at the state level now is because there's so much focus on the federal piece.
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that's having a backlash on us. >> thanks so much to you both. thank you for joining us. up next, billions on broadway and beyond. "wicked" celebrating ten years as one of theaters most popular
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broadway's great white way proved to be a yellow brick road
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to profit for the play "wicked." it's celebrating a decade on stage. while the performers may change, the show goes on. the business model is still defying gravity. ♪ defying gravity ♪ i'm flying >> the fact the show has been going on for ten years and nine companies later is a testament to the fans. >> people come from all over the world to see the show. they say i've seen it in singapore and japan, but i wanted to see it on broadway. >> i said this is different. >> it has all the ingredients of what you think of when you think of a great american musical. tune for music. witty dialogue. a terrific story. when the curtain comes down i think people feel they've had an experience. they leave the theater thinking of it, dreaming of it and coming
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back for more. >> 38 million people around the world have seen a production of "wicked." to witches made famous in the wizard of oz. the it's grossed more than $3 billion globally to decidedly mixed reviews. ♪ popular >> they say nobody likes "wicked" but the audience, which is fine with me. one of the things we did when we opened in new york is we heavily discounted. if we put people in this theater and they are experiencing what we're feeling when we watch the show then the world will spread. we watched the box office in the first three months grow and grow. we started selling out the performance. ♪ the wizard will see you now >> was it tough taking on such
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iconic characters as the wizard of oz in the emerald city. how tough was that? >> i think the wonderment is watching familiar characters take unexpected turns. that we have to attribute to gregory mcguire who wrote the novel "wicked," who came up with the idea that this iconic character from our literature and culture that we regard as evil is a woman of justice. >> you read that book and you were going to do this in the film form. >> that's correct. >> what happened? >> something was missing. the material lacked some sort of magic. one day i got a phone call from stephen swartz. he says i know you got the rights to wicked, have you thought about turning it into a musical. as soon as he said music, a
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lightbulb went off in my head. ♪ . >> i was easily persuaded. this was two years before half harry potter and a year before lord of the rings. >> wicked cost $14 million to law firm back in 2003. leading the group of 59 investors was universal pictures. it took less than two years of sell outs to return investor money and the crowds have not stopped coming. >> this is cool. >> when you see when you walk out here how incredibly big this theater is and how huge the balco balcony. >> it's 1800 people. >> 1809. we sell every ticket. >> this is expensive to produce. fly monkeys. how do you keep making money on this show given the fact it is expensive. >> you look at how the marry the
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business side with the artistic side. in this instance we needed to create a world. it had to be big. at ten of the day it's good story telling. if you have a successful show then you have the hard task of how do i keep it running every week. what happens if a hurricane comes. >> "wicked" bringing in nearly a million dollars a week. >> we almost regularly gross 1.7, 1.8 million a week. we have eight other companies doing equal amount of business. there's no time to run all the way back to their dressing room. we create a quick change place. here you see some of the beautiful wardrobe designed by susan. testimony creative team learned something every time we put up a new production. we put up broadway and a tour. we learn we can do this scene a little better if we made this
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change. if you saw "wicked" on opening night ten years ago, you would see choreography that's different. lines that's different. >> it make mes see i've got to come back. >> i like that. >> my thanks to marc platt. up next, a look at the news this upcoming week that will have an impact on your money. then great grapes. talk of global vino shortage worrying wine lovers. is the threat of a dry spell half empty? stay with us.
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follow me on twitter and google plus. look for@maria bartiromo. more earnings news coming. media giant cbs, time warner and disney reporting quarterly reports this upcoming week. on tuesday we'll get the data on the strength of the services industry from the ism nonmanufacturing index. on thursday the first read for the third quarter gdp is out. also on thursday, twitter is going public. on friday, the big number of the week jobs report will be out. that will be released for the month of october. finally, news that may drive you to trick drink. morgan stanley is predicting a global wine shortage by some 300 million cases. this would be the worst shortfall in worse to 50 years due to rising global con sujs op
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wine and declining production. growers groups say while 2012 harvest was week, 2013 looks to be back on track. wine lovers should toast. we'll be watching that story. that will do it for us today. next week, dna tests that could save your life. how much do you want to know about your medical future? keep it right here where we are "on the money." have a great week.
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good morning. inside the rampage. a new federal criminal complaint lays out what happened when the gunman opened fire at los angeles international airport. this as the slain tsa officer's wife speaks out. >> he was a very good person. he took pride in his duty for the american public. show of force. extra-tight security as some 45,000 athletes prepare to run in today's new york city marathon since the first time since both superstorm sandy and the boston bombing. and what the hail? a fantastic finish at the end of the nebraska/northwestern football game.


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